'No credible explanation for missing mining data: a department in meltdown'
The problems plaguing the Department of Mineral Resources and Energy (DMRE) hold serious consequences for South Africa.
In an article for Business Maverick, journalist Ed Stoddard writes about the procurement process to replace the dysfunctional Samrad mine licensing system used by the Department.
The stakes are huge he says, as deadlines for bids for the tender to replace Samrad closed on 20 August "amid concerns that the most qualified candidates could be excluded because of local BBBEE criteria".
We don't know yet who's applied but my understanding from talking to mining consultants and analysts, is that a couple of companies that would be very well-placed... almost certainly don't meet the BBE and local criteria, so they will be excluded.Ed Stoddard, Journalist
The problems at the DMRE have gone from bad to worse says Stoddard in conversation with Bruce Whitfield.
How can it deal with the licensing system tender process when it couldn't even provide the standard monthly mining data for the month of June? he asks
"It really points to a department in meltdown."
The fact of the matter is that the DMRE gets monthly surveys from mining companies, and that is how they compile the monthly production and sales data which they then pass on to Statistics South Africa.Ed Stoddard, Journalist
The June data was supposed to be published on August 12th. Stats SA put out a notice that day saying they couldn't do it... We're still in the dark and there's no public explanation from the DMRE.Ed Stoddard, Journalist
The thing is... if you can't get the little things right you're not going to get the big things right.Ed Stoddard, Journalist
This raises questions around the integrity of the GDP data which Stats SA will publish on Tuesday next week he says, because it will not have the June mining data for the second quarter.
The commodities boom, as we all know, is one of the key drivers of GDP growth in this country... It's one of the key things that's holding the rand up!Ed Stoddard, Journalist
Stoddard points out that there are a lot of market players internationally like commodity or forex traders, that depend on this data.
Listen to the conversation below:
This article first appeared on CapeTalk : 'No credible explanation for missing mining data: a department in meltdown'
Source : https://cdn.pixabay.com/photo/2015/07/22/19/30/mining-856022960720.jpg